This is just one of many contracts the telco is trying to work out with its unions in other parts of the country. The service provider is also in the process of negotiating other contracts covering almost 40,000 wireline telephone workers.

Fellow Bell company Verizon (NYSE: VZ) is still trying to finalize a labor agreement for 45,000 of its union workers. Last August, Verizon's union workers, who are represented by the International Brotherhood of Electrical Workers (IBEW) and the Communications Workers of America (CWA), went on strike after they could not come to an agreement on a number of concessions on pension and healthcare contributions.

CWA said that provisions of the tentative contract include annual wage increases of 2 percent, 2.5 percent, 2.25 percent and 2.5 percent respectively over the four-year life of the contract, in addition to no change to existing pension plans and a ratification bonus of $1,000 per member.

Neither AT&T nor the CWA would comment on the specifics of their tentative contract. Union members still to vote to ratify the contract.